The Namibia Grape Company (NGC) has announced a N$24 million capital investment to replant and replace aging vineyards and improve key infrastructure.
This announcement was made by the NGC Board Chairperson, Richwell Lukonga, during the company’s first-ever dividend payout ceremony, where N$10 million was handed over to its shareholder, the National Youth Service (NYS).
Lukonga acknowledged the dividend payout as a testament to the company’s strong financial performance and resilience, despite ongoing challenges in the grape industry.
“Despite the challenges faced across the grape industry, the NGC Board remains committed to the sustained growth of the business. This commitment includes a replanting programme and other major capital investments planned over the next five years,” he said.
NGC has seen growth in the 2024/2025 season, exporting 548 containers of grapes through the Port of Walvis Bay, which is a 43% increase from the previous season.
The company also remains a significant employer, with over 1,200 Namibians hired during peak harvest times.
Highlighting the company’s financial progress, Lukonga shared that NGC successfully raised and repaid a N$130 million capital facility from Standard Bank in the previous year.
“We are happy to share with you that the facility is paid off, despite the fact that we will still need part of the facility for this financial year. But we are in a very good position just as we started this relationship,” he added.
According to the Chairperson, a key development in NGC’s operational model is the new service agreement between NYS and Capespan, which came into effect in the 2024 financial year.
Under this commercial partnership, NGC holds a 51% stake, while Capespan owns the remaining 49%.
Lukonga emphasised that the partnership allows for proportional participation in operations and profit-sharing, ultimately maximising shareholder value for NYS.
The N$10 million dividend will not only support NYS operations but also enhance its agricultural initiatives.
A portion of the funds will be used to acquire centre pivots to boost agricultural production, promoting self-sustainability and food security.
These efforts are expected to generate employment, create internships, and provide Work Integrated Learning (WIL) opportunities for NYS trainees and students from other institutions.
NYS also plans to expand its impact by increasing its 16th intake to 1,000 youth, up from 750 in the previous years.
